mutual funds and Sec 10(35)

HI FRIENDS.


KINDLY SOLVE THIS.

 

WHETHER CAPITAL GAINS ON SALE OF MUTUAL FUNDS IS EXEMPT FROM TAX U/S 10(35).

 

35) any income by way of,—

      (a)  income received in respect of the units of a Mutual Fund specified under clause (23D); or

      (b)  income received in respect of units from the Administrator of the specified undertaking; or

      (c)  income received in respect of units from the specified company:

Provided that this clause shall not apply to any income arising from transfer of units of the Administrator of the specified undertaking or of the specified company or of a mutual fund, as the case may be.

Explanation.—For the purposes of this clause,—

      (a)  “Administrator” means the Administrator as referred to in clause (a) of section 2 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002)78;

            (b)        “specified company” means a company as referred to in clause (h) of section 2 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002)78;

 

 

Replies (4)

Dear Friend....

       Capital Gains Exemption Deals With under Section 10(38).

10(35) Says Only Mutual Fund Interest.... Like a Dividend...

Regards.,

THIRU

YES LONG TERM CAPITAL GAIN IS EXEMPT ON MUTUAL FUNDS , BUT U/S 10(38)

& U/S 10(35) AMOUNT RECD ON SALE OF MUTUAL FUNDS SPECIFIED UNDER CLAUSE 23D SHALL BE EXEMPT

FULLY AGREED WITH FRIENDS.

 

REGARDS,

 

MANOJ

Gain on Sale of Mutual Funds are taxed as under -

S. Term Gains -

A. if from Equity oriented funds( i.e. the funds whose more than 65% amount is invested in equity shares), Gain will be taxable at 15%.

B. If from any other funds - taxable at normal slab rates.

L. Term Gains -

A. If from equity oriented units, it will be exempt U/s10(38)

B. If from any other funds - taxable @ 20%

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